All three phases of the US$300 million Vreed-en-Hoop Shorebase Inc (VEHSI) have been completed, with VEHSI Director Nicholas Deygoo-Boyer revealing that they are looking to officially hand over the facility to ExxonMobil in January of 2025.
A few days ago, President Dr Irfaan Ali was given a tour of the VEHSI facility, during which he was updated on the progress of facility. For instance, it was revealed that Phases one, two and three of the projects were completed in June, August and this month respectively.
It was also explained that the shore base will support petroleum operations, including offshore subsea equipment installation for capital projects, the storage and preservation of emergency response equipment such as capping stacks, and the fabrication of critical equipment like Pipeline End Termination (PLETS) and Flowline End Termination (FLETS) in Guyana.
In an interview with this publication, VEHSI Director Nicholas Deygoo-Boyer, who represents National Hardware Guyana Limited – one of the local companies that formed the consortium developing the multi-billion-dollar project, gave further insight into the progress. For instance, the project is expected to be formally handed over to ExxonMobil next year January.
“We expect to do a formal ceremony in January. And the journey has been a very interesting one. And we’ve all learned a lot. So, you have, within that journey, we have VEHSI which is comprised of NRG holdings, the local partners, Jan De Nul our contractor and partners and then you have our clients, ExxonMobil and the Stabroek Block consortium,” he explained.
He described the journey towards completing the artificial island as an interesting one, adding that they are looking to expand operations on the shore base. This expansion is expected to include a multi-purpose berth for commercial cargo, a fuel terminal and dry dock.
“I think for all involved, it’s been an interesting journey. We’ve learned a lot; we’ve accomplished a lot. And I think we’ve really grown stronger as a result of the experience. We are definitely hoping to expand to have a multi-purpose berth in the future, where we can receive commercial cargo,” Boyer added.
In April 2022, ExxonMobil Guyana and VEHSI signed a 20-year agreement for shore base services to be provided at the port of Vreed-en-Hoop facility to support the US oil giant’s operations offshore Guyana. The sod was subsequently turned in June on the US$300 million facility.
VEHSI is a joint venture between a fully-owned Guyanese consortium – NRG Holdings Incorporated, and Jan De Nul Group, the Belgium-based company undertaking the project that specialises in offshore, marine, civil, environment, and project development.
The consortium includes among others, Boyer of National Hardware Guyana Limited, and Andron Alphonso of ZRN Investments Inc.
Located in Region Three (Essequibo Islands-West Demerara), the Vreed-en-Hoop facility occupies some 40 acres of coastal land. Phase One of the project saw the deepening, widening, and dredging of the access channel, as well as land reclamation.
It also included work on an offshore terminal, dry dock facility, and fabrication yard spanning 65 hectares.
Meanwhile, Phase Two involved deepening the dredging of the access canal and expanding reclamation. The mega-port will centralise multiple shipping and logistic services in one location.
Last year November, the Shore Base received its first commercial ship, the MV Virtuous Striker. Additionally, with a cargo of over 26,900 metric tonnes, it was one of the largest payloads to ever be offloaded.
The docking and offloading of the vessel marked a major milestone for the facility. At 190m long, this vessel was the longest to ever enter the Demerara River at the time. It was described by the consortium as a milestone that took them closer to becoming fully operational.
In March of this year, VEHSI had received financing to the tune of US$25 million, approved through the New Hayven Merchant Bank for the landmark project. This financing had also marked a significant milestone in facilitating VEHSI’s first-of-a-kind oil and gas infrastructural project.
Collaborating closely with an external financial entity, New Hayven Merchant Bank spearheaded the structuring and deployment of this financing arrangement, tailored specifically to meet the unique requirements of VEHSI’s project.
The Bank had meanwhile also said that its commitment extended beyond this collaboration, as it would continue to actively engage with other providers of risk capital to deliver bespoke financing solutions and deploy capital across diverse sectors within Guyana.
According to the bank, by facilitating access to capital and fostering strategic partnerships, it aims to catalyse growth and drive economic prosperity throughout the Region. Floyd Haynes, the Founder and Chairman at New Hayven Merchant Bank, had described his bank’s partnership with VEHSI as an example of their commitment to sustainable development.
